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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

In a limited liability partnership, in the absence of agreement on any matter, the mutual rights and duties of the partners and of the LLP and its partners are determined by:

Where the LLP agreement is silent on a matter, the mutual rights and duties of the partners and of the LLP and its partners are determined by the provisions on that matter in the First Schedule to the LLP Act, 2008, as section 23(4) provides.

  1. AThe Indian Partnership Act, 1932
  2. BThe provisions on that matter set out in the First Schedule to the LLP Act, 2008Correct
  3. CThe decision of the designated partners alone
  4. DThe Companies Act, 2013

Explanation

Section 23(4) of the LLP Act, 2008 says that in the absence of agreement on any matter, rights and duties are determined by the relevant provisions of the First Schedule. The Partnership Act does not fill the gap.

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